JP Morgan
Jamie Dimon says the conflict between Israel and Gaza could have “far-reaching impacts” on energy prices, food costs and international trade
Fri Oct 13, 2023 3:33 p.m. BST
JP Morgan boss Jamie Dimon has warned that the world could be living through “the most dangerous time the world has seen in decades” as Israel prepares to launch an expected ground offensive on Gaza.
The escalating conflict could have “far-reaching impacts” on energy prices, food costs, international trade and diplomatic relations, he said as JPMorgan Chase, America’s largest bank, reported its results for the latest quarter.
While the lender posted another solid set of results, Dimon warned that interest rates in the United States could continue to rise as consumer savings dwindle.
Dimon said: “The war in Ukraine, exacerbated by last week’s attacks on Israel, could have far-reaching effects on energy and food markets, global trade and geopolitical relations.” This could be the most dangerous time in the world has experienced for decades.
“While we hope for the best, we are preparing the company for a wide range of outcomes so that we can consistently provide services to our customers regardless of the environment.”
Earlier this week, Dimon informed employees that JP Morgan employees in the region had been confirmed safe. “Last weekend’s attack on Israel and its people and the resulting war and bloodshed is a terrible tragedy,” he wrote in an internal memo seen by the Guardian.
In a later memo, he also told employees that the conflict in the Middle East would have “broad implications that extend far beyond the region.”
Global companies have scrambled in recent days to account for their employees and formulate public comments on the developments. Antonio Neri, chief executive of Hewlett Packard Enterprise, called Hamas’ attack on Saturday “unjustified and inexcusable.”
In a statement released alongside the bank’s results on Friday, Dimon said U.S. businesses and consumers “remain generally healthy” but noted that Americans had “run down their excess cash reserves.”
As the Federal Reserve considers the next steps in its price growth campaign, he said: “Continued tight labor markets, as well as extremely high national debt with the largest peacetime budget deficits ever, increase the risk that inflation will remain high and that this will rise “The interest rates continue to rise from here.”
JP Morgan’s net profit rose 35% to $13.15 billion in the three months to the end of September. The bank’s revenue rose 22% to $39.87 billion.
The takeover of collapsed First Republic Bank, which collapsed earlier this year after weeks of turmoil in the banking sector, contributed to JP Morgan’s net interest income – the difference between what it earns on loans and what it pays out on deposits – rose to an all-time high. Time up.
Shares of JPMorgan rose 1.8% in premarket trading in New York on Friday.
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